Cape Verde
Overview
The VAT regime for electronically supplied services was approved by Law 4/X/2021 (2022 State Budget) and entered into force on 1 January 2022.
This regime only applies to international e-commerce operations carried out by non-residents in Cape Verde provided that they are included in a list prepared by the Ministry of Finance. If a non-resident supplier is not on this list, they will not have to charge VAT on their supplies (under this regime) to consumers in Cape Verde.
This regime applies to international e-commerce operations, as defined below (see “Services in Scope”), whenever the consumer has their head office, permanent establishment or domicile in the national territory or when the payment originates in Cape Verde or is intermediated by a financial institution established therein.
Law 16/X/2022 of 30 December 2022 (2023 State Budget) introduced minor amendments, such as transferring the responsibility of publishing the list of main e-commerce operators and underlying responsibilities from the Ministry of Finance to the “government office responsible for the area of finance”, and republished the regime.
E-commerce operators appearing on the list must proceed with a simplified registration through the electronic page. In this regard, there are two different regimes applicable within the ESS regime:
- General regime: applicable to taxable persons who proceed with the simplified registration
- Subsidiary regime: applicable to the taxable persons who do not proceed with the registration
The VAT is due the moment the payment for the supply is authorised by the financial institution, at the VAT rate applicable (reduced or standard rate), if the taxable person is in the general regime or only at the standard rate of 15% if the taxable person is in the subsidiary regime. Currently, only a single rate of 15% is foreseen in the VAT legislation.